Turkish flat steel spot prices rise further

Prices have increased further in the Turkish flat steel spot market, but demand has failed to recover over the past week. Traders have increased their offers taking into account low stocks and tight availability from the mills. In addition, the currency fluctuations have persisted, thus restraining the demand for flats in the spot market. However, although buyers have been covering only their urgent needs, traders are optimistic for now and expect further price rises. "The market expects higher producer prices for flat products, and scrap prices have already increased this week. We have insufficient stock levels and also buyers as is traditional will need more materials with the approach of the spring period. We do not foresee any stock increase soon and in the current situation new price increases seem unavoidable," a trader told SteelOrbis.

On the other hand, buyers are experiencing problems during their deals in terms of credit limits. Many market participants are negative regarding the overall financial situation in the country and many expect local companies to face some serious issues taking into account that a lot of payments are not being done on time. "Everybody has the same fear at the moment. When buyers bought their materials, the lira was stronger against the dollar and they had 90 days to pay, now 90 days is about to expire and they have to pay more than they expected. Companies know the currency fluctuations can cause higher costs, but the lira has lost approximately five percent against the dollar in only three months. This is an unbearable extra cost when you consider the strong price levels and the buying volumes in the steel business," another trader told SteelOrbis.

Spot prices have increased by $30/mt for HRC, $90/mt for HR pickled materials and $50 for CRC and materials, week on week.